Ways in which you can compare and opt for best personal loan

The decision to take a loan is a huge step in anyone's life. As with this decision comes lots of liability. The very first thing which comes in your mind after opting to go for a loan will be the selection of a trusted and suitable lender.

There cannot be a guide that will let you know exactly that which financial institution/lender can be ideal for the loan as every individual have their unique requirement, financial status and choice.

The market is full of financial institutions with plenty of interesting offers but, you should be very careful while selecting an option as this is not just another shopping.

This decision can affect the lives of many individuals and hence require special attention and care. Main problem is how to select the right loan company when you have these many options and which is right for you? Yes, we're going to help you solve this question today.

Loan comparison is not a fairly easy process but you should take care of few things. Please remember we can only guide you but, the final choice in this matter has to be yours.

Let's talk about the top factors which you should analyze before applying for a personal loan:

Amount of the Loan

Personal Loan amount offered to the individual is different in almost every bank and financial institution. It is important that you simply check with the bank or the loan company about the amount of personal loan they can release as a personal loan.

For instance, if you need a small amount of loan, then you must find a financial institution that provides lower amounts. You will find a few options when you are looking for large amounts for instance Twenty six lakhs.

For higher loan amounts I would suggest you look at icici bank personal loan in greater noida.

Loan Rates

When it is about paying off money, how can we forget about rate of interest? Interest rates are different for each loan provider and hence it is important to look for lender which offers best rates. We all need lowest interest rate so that our EMI's are low

These days, you can check rate of interest offered by banks and financial institutions online however it’s a good practice to ask with their adviser. It is important to know that whatsoever is written on the loan provider’s website might not be 100% true for you because your actual interest rate will be dependent on your several factors.

For example, if you have a good relationship as an account holder in a bank, then it can work in your favor for fixing of interest. The average rate of interest range from 11% to 40% based on your credit score

Processing Charges:

In addition to the interest rate there are additional charges which loan provider charges to process the loan application form. These additional charges are known as processing fees. It is the loan company which decides on the % of the processing fee to be charged from the client.

For example, if your amount of the loan is 1 lakh and the processing fee is 2%, you'll need to pay 2% of 1 lakh rupees (i.e. 2,000) as processing fees. Processing fees vary from bank to bank but, mostly it ranges from 2 to 2.5 % of your loan amount.

Processing fees should be in your checklist while finalizing a bank or a financial institution for a personal loan.

Defaulting Charges

Everyone likes to pay personal loan equated monthly installment on time but, sometimes they are not able to pay it because of whatever reason. Banks and financial institutions are familiar with these problems. But because they want the default to be minimum, they have got certain penalty / default charges for delayed payments.

You should research and compare the personal loan offers on this basis irrespective of how confident you are about your punctuality or pay back ability. The charges are decided considering the fact that lenders also suffer from a loss due to your late payment.

In that case, it's really a way of ensuring safety from any loss by the banks. These kind of fees can differ on the basis of lenders, interest rates, days of delay etc. All of these parameters are always made transparent by financial institutions before providing the loan. It is just that we're not 100 % aware of these things and their impact on us.

Eligibility Conditions:

Do you know if you are eligible for a loan product or not? There is no point even thinking about getting a personal unsecured loan if you are not eligible for it. If you have not had a look at the eligibility on the lenders site for personal loan, then please check it now.

If you don't do this in the beginning, then you might end up wasting considerable time and effort. I would say this should not be missed at all.

You may also like to read know all about balance transfer personal loan.

Required Documents

Documentation for a loan can be really frustrating generally but submitting your basic documents is important for personal loan approval. Getting papers needed a personal loan should not be difficult as it only require ones which we have already like Aadhar card, Tax statements and bank statements.

However, we do not have the correct documents as per the requirements and many times share a different document that might not be taken into account by the financing bank.

So, having a look in the documentation section of the loan company’s website will give you a picture of what documents are necessary.

Repayment Options

Concern with high repayments and equated monthly installments is always there at the time a person takes a loan. Is personal loan EMI's amount is pain in your ass? To solve this problem, loan providers have flexible instalment options. If equated monthly installments is more that what you might payback every month then, make sure you consider reducing loan amount. Talk to your bank for type of payment options they've got. This will make your life easy

EMI Duration

Longer the loan duration, lower the EMI amount. If your salary does not allow to repay the loan EMI's on time then it would be better to either reduce the loan amount or increase the tenure of the loan.

Not to worry, your financial institution will definitely provide you with an option to select your loan duration but, it may have some dependency on your credit rating. For example, you can choose a flexible tenure which ranges between 1 to five years while taking Icici loan. You can browse more such offers on the internet.

At the time of taking the personal loan, our main priority is to get the amount as soon as possible. But as an aware consumer, we must research thoroughly beforehand.